Sonos May Not Even Need Apple After Its Q4 Results

By Chris Lange Published Nov 19, 12:08PM EST

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Sonos May Not Even Need Apple After Its Q4 Results — © amazon.com

When Sonos Inc. (NASDAQ: SONO) reported its most recent quarterly results after the closing bell on Wednesday, the speaker maker said that it had $0.33 in earnings per share (EPS) on $339.8 million in revenue. The consensus estimates had called for EPS of $0.15 on $299 million in revenue, and the fiscal fourth quarter from last year reportedly had a net loss of $0.15 per share and revenue of $294.1 million.

During the latest quarter, revenue increased 16% year over year. However, excluding the impact of the 14th week of the quarter, revenue increased roughly 7% from last year.

Note that Apple Inc. (NASDAQ: AAPL | AAPL Price Prediction) usually pushes Sonos speakers as part of its ecosystem. With this great surge of sales, Sonos may not be so reliant on Apple after these results.

The year-over-year gains that Sonos made on the bottom line were really what pulled the company through this quarter. The adjusted earnings before interest, taxes, depreciation and amortization increased to $46.4 million from a loss of $2.8 last year. Also, the adjusted EBITDA margin increased to 13.7% from −0.9% last year.

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Management said that the company has reached an inflection point in the fourth quarter that demonstrates the power and profitability of its model.

The company said cash and cash equivalents totaled $407.1 million at the end of the quarter, up from $338.6 million at the end of the previous year.

Also, the company completed its previous $50 million share repurchase program during the fourth quarter in which it purchased 3.8 million shares. Now the board of directors has authorized a new common stock repurchase program of up to $50 million.

Looking ahead to the fiscal 2021 full year, the company expects to see revenue in the range of $1.44 billion to $1.5 billion and adjusted EBITDA between $170 million and $205 million. Analysts expect $0.12 in EPS and $1.38 billion in revenue for the year.

Sonos stock traded up about 25% at $21.41 on Thursday, in a 52-week range of $6.58 to $22.32. The consensus price target is $16.43.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.